Swiggy’s much-anticipated IPO made its mark on the Indian stock markets on November 13, opening at ₹420 on the National Stock Exchange (NSE), which reflected a strong 7.7% premium over the issue price of ₹390. On the Bombay Stock Exchange (BSE), the listing price of ₹412 signaled a 5.64% increase above the initial price, capturing the market’s attention as Swiggy became one of the biggest IPOs of the year.
This milestone event is expected to create around 500 new crorepatis among Swiggy employees through a substantial Rs 9,000 crore ESOP payout.
The IPO, valued at a notable ₹11,327.43 crore, was open for public subscription from November 6 to November 8, 2024, with shares priced within a range of ₹371-390 per share. Demand for Swiggy’s stock was robust, closing with bids 3.59 times greater than the 16 crore shares offered. Bids came in for an impressive 57.53 crore shares, showcasing considerable interest from institutional investors and retail investors alike. While retail investors booked their shares 1.14 times, the qualified institutional buyers (QIB) portion saw the strongest demand, oversubscribing by 6.02 times. Non-institutional investors (NII), however, were more reserved, with a subscription rate of 0.41 times, while the employee quota reached a subscription rate of 1.65 times.
The IPO included a fresh issue of 11.54 crore shares, raising ₹4,499.00 crore for Swiggy, along with an offer for sale of 17.51 crore shares, valued at ₹6,828.43 crore. As a result, the IPO led to a reduction in promoter shareholding from 63.56% to 52.97%. Ahead of the public listing, Swiggy had already raised ₹5,085 crore from anchor investors on November 5, demonstrating strong backing from key market players. Notably, the company offered its eligible employees 7,50,000 equity shares at a ₹25 discount per share, providing them with a valuable entry point into the company’s stock.
Swiggy plans to channel the funds raised from the IPO into several strategic initiatives, including bolstering its material subsidiary, Scootsy, which specializes in premium food delivery. Additionally, a portion of the funds will be allocated to reduce existing debt, while further investments will enhance the company’s technology and cloud infrastructure, supporting Swiggy’s long-term growth in the food delivery and quick-commerce space.
Marking a rare public appearance, Swiggy’s reclusive CEO, Sriharsha Majety, joined his leadership team for the ceremonial listing event at the National Stock Exchange in Mumbai. Majety’s presence underscored the significance of this milestone as Swiggy took its first steps as a publicly listed company.
